Highlights of Ohio Gov. Kasich's midterm budget

A look at the key proposals in Ohio Gov. John Kasich's midterm budget bill:

TAXES:

Cut Ohio income taxes by 8.5 percent to bring the top rate to 4.66 percent by 2016.

Raise Commercial Activity Tax rate from 0.26 percent to 0.30 percent.

Increase cigarette taxes from $1.25 to $1.85 a pack, with similar increases on other tobacco products and e-cigarettes.

Raise the severance tax rate on high-volume drillers to 2.75 percent of gross receipts, exempting $8 million per well in start-up costs.

Earmark 20 percent of drilling-tax collections to local communities, through a combination of direct payments, competitive transportation grants and a legacy fund controlled by newly created regional commissions appointed by the governor.

EDUCATION:

Extend vocational options to 7th and 8th graders.

Establish dropout recovery programs for adults ages 22 and older at eligible community colleges and career centers.

Provide $10 million in casino licensing fees for Community Connectors mentorship program.

Tie two-year colleges' state funding to completion rather than enrollment.

Base 50 percent of state funding to technical centers on the percentage of students who find jobs.

Allow two-year colleges to offer students a guaranteed tuition rate.

Create a globalization liaison at the Board of Regents to attract and retain international students.

VETERANS

Fast-track state licensing and certification for veterans and their spouses.

Grant free college credit to veterans for military training and experience.